A large regional SaaS provider in the beauty and wellness industry was experiencing critical cash flow issues. Those issues were largely tied to technology spend for future features and perceived future offerings by the company, but limited customer support and data existed to justify the strategy. MCA was engaged by the company at the lender’s request to develop an operating budget and actionable plan that would reposition the company from negative cash flow to positive cash flow within 4 to 8 weeks.
Using detailed analytical skills, MCA executed a deep dive into the technology spending plan and its specific initiatives and projects. It did the same with the marketing and customer service teams to validate what customers and users were seeking in terms of services, features, and support. The two processes identified a material gap between customer needs and what the CEO believed they wanted.
A complicating factor was that the CEO had been unwilling to make changes contrary to the strategy in place, and the management team was reluctant to speak up. Armed with facts and data, MCA presented the CEO, board, and lenders with a strategic plan to force the issue towards change. MCA educated the CEO and board over a short period—under pressure from continued losses and no cash to operate—to gain agreement. The lender agreed to fund only a newly formulated plan based on the findings that demonstrated progress.
Although the process was complex and stressful, company management appreciated MCA’s skill in presenting difficult truths and compelling evidence to the board about the urgent need for fundamental change. In the end, the company implemented the recommendations and returned to positive cash flow.
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